Haw. Code R. § 4-60-12 - Method of payment
Payment to producers and producer-distributors under this chapter shall be made as follows:
(1)
Each distributor or producer-distributor shall determine the total quantity of
fresh milk and its butterfat content received from each producer or
producer-distributor for each calendar month;
(2) The information for the month immediately
preceding as set forth in paragraph (1) together with other information
required by the branch, shall be submitted to the branch on forms provided by
the branch, not later than the end of the eighth day of each month;
(3) The branch shall determine for each
producer and producer-distributor the portion of the fresh milk delivered for
which the producer and producer-distributor shall be paid class I price; the
portion for which the producer and producer-distributor shall be paid class I
fresh skim milk price; the portion for which the producer and
producer-distributor shall be paid class II price; the portion for which the
producer and producer-distributor shall be paid excess pool price; less proven
plant shrinkage and route returns, as the case may be, compute the value of the
milk in each classification with proper adjustment for butterfat differential;
and report the information to each distributor and producer-distributor not
later than the end of the fifteenth day of the month;
(4) Payments for fresh milk delivered in a
given month shall be made to producers, producer-distributors or dairy
cooperatives during the subsequent month as follows: A first payment of
approximately fifty per cent of the total amount owed by the end of the tenth
day of the month and the balance of the amount owed, as computed by the branch
in paragraph (3) less authorized deductions, by the end of the twentieth day of
the month. Evidence of such payment shall be filed with the branch by the
twenty-fifth day of the month; and
(5) The branch shall compute each distributor
and producer-distributor's obligation to a special trustee account known as the
"Producers' Settlement Fund," which fund shall be administered by the branch
and from which the branch shall make distribution and adjustment payments to
distributors or producer-distributors to effectuate a marketwide pooling of
milk produced for use in the Honolulu milk shed and Hawaii milk shed as
follows:
(A) Value of plant utilization of
milk. Multiply the volume of fresh milk reported by each distributor or
producer-distributor as utilized in class I, in class II, and in the excess
pool, if any, with proper adjustments for butterfat differential, plant
shrinkage and route returns, by the appropriate price to determine the value of
the plant utilization of milk;
(B)
Amount owed producers for milk. Add the amounts owed to producers and
producer-distributors by a distributor or producer-distributor as determined in
paragraph (3) to determine the total amount owed to producers or
producer-distributors for fresh milk delivered to said distributor or
producer-distributor; and
(C)
Computing producers' settlement fund. Compare the value of the plant
utilization, as determined in subparagraph (A) above, with the total amount the
distributor or producer-distributor owes producers and producer-distributors
for fresh milk delivered, as determined in subparagraph (B) above. If the total
of plant utilization, subparagraph (A) exceeds the distributor or
producer-distributor's obligation to producersand producer-distributor,
subparagraph (B), the distributor or producer-distributor shall pay the
difference into the producers' settlement fund. If the distributor or
producer-distributor's obligation to producers and producer-distributors,
subparagraph (B), exceeds the value of plant utilization, subparagraph (A), the
distributor or producer-distributor shall be paid the difference from the
producers settlement fund. Payments by distributors and producer-distributors
into the producers' settlement fund shall be made by the eighteenth day of the
month following delivery of milk and payments from the fund to distributors and
producer-distributors shall be made therefrom by the twenty-eighth day of said
month.
Notes
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